Google Throws Down the Gauntlet with Custom-Chip Agreement

Nvidia's stock remained relatively flat as Big Tech stocks rallied 1.4% on Wednesday morning, but the company is facing increased pressure from Google and Marvell's new custom-chip agreement.

Google's deal with Marvell covers AI inference accelerators and a wider stack of silicon supporting its TPU ecosystem, which could potentially become cheaper alternatives to Nvidia's GPUs for certain workloads.

The agreement also includes warrants for Google to buy up to 58.97 million Marvell shares at $206.58 each, worth around $12.18 billion.

Nvidia still boasts impressive numbers, with its fiscal first-quarter revenue skyrocketing 85% higher to a record $81.6 billion, driven by the Data Center segment's explosive growth of 92% to $75.2 billion.